Nederlands English Deutsch

Methods and concepts for Value Based Management (VBM)

M&A Concepts

The Acquisition Integration Approaches model of Philippe Haspeslagh and David Jemison provides insight and guidance in Mergers and Acquisitions (M&A) on choosing the optimal integration approach. In mergers and acquisitions, the motto was traditionally often "Make them like us", or relatively simple criteria where used to choose an approach (such as the size and and quality of the acquired firm). Haspeslagh and Jemison (1990) have stated that the approach a company should take towards integration should be understood by considering two (additional) criteria:

Strategic Interdependence
Obviously, the goal and central task in any acquisition is to create the value that is enabled when the two organizations are combined.
There are four types of value creation:

Organizational Autonomy
Haspeslagh and Jemison warn that managers must not lose sight of the fact that the strategic task of an acquisition is to create value, and must not grant autonomy too quickly, although obviously people are important and should be treated fairly and with dignity. The need for organizational autonomy can be answered using three questions:

The Preferred M&A model
Depending on the score on these two factors (see graph), the preferred acquisition integration approaches are: